Italy's public budget deficit widened in the first quarter to 12.1% of gross domestic product, compared with 11.3% in the same period of 2022, official statistics agency ISTAT said on Tuesday.

The widening of the deficit was due to a 7.7% year-on-year increase in public spending, which outstripped a 5.9% rise in revenues.

Giorgia Meloni's government is targeting the 2023 deficit at 4.5% of GDP, down from 8.0% last year when it was considerably inflated by a Eurostat ruling on the classification of tax breaks for energy-saving building work. ISTAT gave the following quarterly public finance data. All figures are expressed as a percent of gross domestic product.

 

 

Public balance Revenues Spending Primary Balance* Q1 2023 -12.1 41.7 53.8 -8.8 Q1 2022 -11.3 42.5 53.8 -7.6

*Public balance net of debt servicing costs.

(Reporting by Gavin Jones, gavin.jones@reuters.com)